diff --git a/CHANGELOG.md b/CHANGELOG.md
index 2dbe071b6c2..b806a42e76d 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -8,6 +8,10 @@
 
     Starting with this release, that last step can now be replaced with telling esbuild to serve a specific HTML file using the `--serve-fallback=` option. This can be used to provide a "not found" page for missing URLs. It can also be used to implement a [single-page app](https://en.wikipedia.org/wiki/Single-page_application) that mutates the current URL and therefore requires the single app entry point to be served when the page is loaded regardless of whatever the current URL is.
 
+* Use the `tsconfig` field in `package.json` during `extends` resolution ([#3247](https://github.com/evanw/esbuild/issues/3247))
+
+     This release adds a feature from [TypeScript 3.2](https://www.typescriptlang.org/docs/handbook/release-notes/typescript-3-2.html#tsconfigjson-inheritance-via-nodejs-packages) where if a `tsconfig.json` file specifies a package name in the `extends` field and that package's `package.json` file has a `tsconfig` field, the contents of that field are used in the search for the base `tsconfig.json` file.
+
 * Implement CSS nesting without `:is()` when possible ([#1945](https://github.com/evanw/esbuild/issues/1945))
 
     Previously esbuild would always produce a warning when transforming nested CSS for a browser that doesn't support the `:is()` pseudo-class. This was because the nesting transform needs to generate an `:is()` in some complex cases which means the transformed CSS would then not work in that browser. However, the CSS nesting transform can often be done without generating an `:is()`. So with this release, esbuild will no longer warn when targeting browsers that don't support `:is()` in the cases where an `:is()` isn't needed to represent the nested CSS.
diff --git a/internal/bundler_tests/bundler_tsconfig_test.go b/internal/bundler_tests/bundler_tsconfig_test.go
index 6768c80eec6..d58e9680bd1 100644
--- a/internal/bundler_tests/bundler_tsconfig_test.go
+++ b/internal/bundler_tests/bundler_tsconfig_test.go
@@ -1199,6 +1199,140 @@ func TestTsconfigJsonNodeModulesImplicitFile(t *testing.T) {
 	})
 }
 
+func TestTsconfigJsonNodeModulesTsconfigPathExact(t *testing.T) {
+	tsconfig_suite.expectBundled(t, bundled{
+		files: map[string]string{
+			"/Users/user/project/src/app/entry.tsx": `
+				console.log(<div/>)
+			`,
+			"/Users/user/project/src/tsconfig.json": `
+				{
+					"extends": "foo"
+				}
+			`,
+			"/Users/user/project/src/node_modules/foo/package.json": `
+				{
+					"tsconfig": "over/here.json"
+				}
+			`,
+			"/Users/user/project/src/node_modules/foo/over/here.json": `
+				{
+					"compilerOptions": {
+						"jsx": "react",
+						"jsxFactory": "worked"
+					}
+				}
+			`,
+		},
+		entryPaths: []string{"/Users/user/project/src/app/entry.tsx"},
+		options: config.Options{
+			Mode:          config.ModeBundle,
+			AbsOutputFile: "/Users/user/project/out.js",
+		},
+	})
+}
+
+func TestTsconfigJsonNodeModulesTsconfigPathImplicitJson(t *testing.T) {
+	tsconfig_suite.expectBundled(t, bundled{
+		files: map[string]string{
+			"/Users/user/project/src/app/entry.tsx": `
+				console.log(<div/>)
+			`,
+			"/Users/user/project/src/tsconfig.json": `
+				{
+					"extends": "foo"
+				}
+			`,
+			"/Users/user/project/src/node_modules/foo/package.json": `
+				{
+					"tsconfig": "over/here"
+				}
+			`,
+			"/Users/user/project/src/node_modules/foo/over/here.json": `
+				{
+					"compilerOptions": {
+						"jsx": "react",
+						"jsxFactory": "worked"
+					}
+				}
+			`,
+		},
+		entryPaths: []string{"/Users/user/project/src/app/entry.tsx"},
+		options: config.Options{
+			Mode:          config.ModeBundle,
+			AbsOutputFile: "/Users/user/project/out.js",
+		},
+	})
+}
+
+func TestTsconfigJsonNodeModulesTsconfigPathDirectory(t *testing.T) {
+	tsconfig_suite.expectBundled(t, bundled{
+		files: map[string]string{
+			"/Users/user/project/src/app/entry.tsx": `
+				console.log(<div/>)
+			`,
+			"/Users/user/project/src/tsconfig.json": `
+				{
+					"extends": "foo"
+				}
+			`,
+			"/Users/user/project/src/node_modules/foo/package.json": `
+				{
+					"tsconfig": "over/here"
+				}
+			`,
+			"/Users/user/project/src/node_modules/foo/over/here/tsconfig.json": `
+				{
+					"compilerOptions": {
+						"jsx": "react",
+						"jsxFactory": "worked"
+					}
+				}
+			`,
+		},
+		entryPaths: []string{"/Users/user/project/src/app/entry.tsx"},
+		options: config.Options{
+			Mode:          config.ModeBundle,
+			AbsOutputFile: "/Users/user/project/out.js",
+		},
+	})
+}
+
+func TestTsconfigJsonNodeModulesTsconfigPathBad(t *testing.T) {
+	tsconfig_suite.expectBundled(t, bundled{
+		files: map[string]string{
+			"/Users/user/project/src/app/entry.tsx": `
+				console.log(<div/>)
+			`,
+			"/Users/user/project/src/tsconfig.json": `
+				{
+					"extends": "foo"
+				}
+			`,
+			"/Users/user/project/src/node_modules/foo/package.json": `
+				{
+					"tsconfig": "over/here.json"
+				}
+			`,
+			"/Users/user/project/src/node_modules/foo/tsconfig.json": `
+				{
+					"compilerOptions": {
+						"jsx": "react",
+						"jsxFactory": "THIS SHOULD NOT BE LOADED"
+					}
+				}
+			`,
+		},
+		entryPaths: []string{"/Users/user/project/src/app/entry.tsx"},
+		options: config.Options{
+			Mode:          config.ModeBundle,
+			AbsOutputFile: "/Users/user/project/out.js",
+		},
+		expectedScanLog: `Users/user/project/src/tsconfig.json: WARNING: Cannot find base config file "foo"
+`,
+	})
+}
+
 func TestTsconfigJsonInsideNodeModules(t *testing.T) {
 	tsconfig_suite.expectBundled(t, bundled{
 		files: map[string]string{
diff --git a/internal/bundler_tests/snapshots/snapshots_tsconfig.txt b/internal/bundler_tests/snapshots/snapshots_tsconfig.txt
index 29cba788315..b70cf0d70aa 100644
--- a/internal/bundler_tests/snapshots/snapshots_tsconfig.txt
+++ b/internal/bundler_tests/snapshots/snapshots_tsconfig.txt
@@ -283,6 +283,30 @@ TestTsconfigJsonNodeModulesImplicitFile
 // Users/user/project/src/app/entry.tsx
 console.log(/* @__PURE__ */ worked("div", null));
 
+================================================================================
+TestTsconfigJsonNodeModulesTsconfigPathBad
+---------- /Users/user/project/out.js ----------
+// Users/user/project/src/app/entry.tsx
+console.log(/* @__PURE__ */ React.createElement("div", null));
+
+================================================================================
+TestTsconfigJsonNodeModulesTsconfigPathDirectory
+---------- /Users/user/project/out.js ----------
+// Users/user/project/src/app/entry.tsx
+console.log(/* @__PURE__ */ worked("div", null));
+
+================================================================================
+TestTsconfigJsonNodeModulesTsconfigPathExact
+---------- /Users/user/project/out.js ----------
+// Users/user/project/src/app/entry.tsx
+console.log(/* @__PURE__ */ worked("div", null));
+
+================================================================================
+TestTsconfigJsonNodeModulesTsconfigPathImplicitJson
+---------- /Users/user/project/out.js ----------
+// Users/user/project/src/app/entry.tsx
+console.log(/* @__PURE__ */ worked("div", null));
+
 ================================================================================
 TestTsconfigJsonOverrideMissing
 ---------- /Users/user/project/out.js ----------
diff --git a/internal/resolver/package_json.go b/internal/resolver/package_json.go
index 0257ba9457a..04fd6a820b5 100644
--- a/internal/resolver/package_json.go
+++ b/internal/resolver/package_json.go
@@ -21,6 +21,14 @@ type packageJSON struct {
 	mainFields     map[string]mainField
 	moduleTypeData js_ast.ModuleTypeData
 
+	// "TypeScript will first check whether package.json contains a "tsconfig"
+	// field, and if it does, TypeScript will try to load a configuration file
+	// from that field. If neither exists, TypeScript will try to read from a
+	// tsconfig.json at the root."
+	//
+	// See: https://www.typescriptlang.org/docs/handbook/release-notes/typescript-3-2.html#tsconfigjson-inheritance-via-nodejs-packages
+	tsconfig string
+
 	// Present if the "browser" field is present. This field is intended to be
 	// used by bundlers and lets you redirect the paths of certain 3rd-party
 	// modules that don't work in the browser to other modules that shim that
@@ -323,6 +331,13 @@ func (r resolverQuery) parsePackageJSON(inputPath string) *packageJSON {
 		}
 	}
 
+	// Read the "tsconfig" field
+	if tsconfigJSON, _, ok := getProperty(json, "tsconfig"); ok {
+		if tsconfigValue, ok := getString(tsconfigJSON); ok {
+			packageJSON.tsconfig = tsconfigValue
+		}
+	}
+
 	// Read the "main" fields
 	mainFields := r.options.MainFields
 	if mainFields == nil {
diff --git a/internal/resolver/resolver.go b/internal/resolver/resolver.go
index 85bb5ca5063..45ba7d5b05c 100644
--- a/internal/resolver/resolver.go
+++ b/internal/resolver/resolver.go
@@ -1142,30 +1142,44 @@ func (r resolverQuery) parseTSConfigFromSource(source logger.Source, visited map
 			for {
 				// Skip "node_modules" folders
 				if r.fs.Base(current) != "node_modules" {
-					// if "package.json" exists, try checking the "exports" map. The
-					// ability to use "extends" like this was added in TypeScript 5.0.
+					join := r.fs.Join(current, "node_modules", extends)
+
+					// Check to see if "package.json" exists
 					pkgDir := r.fs.Join(current, "node_modules", esmPackageName)
 					pjFile := r.fs.Join(pkgDir, "package.json")
 					if _, err, originalError := r.fs.ReadFile(pjFile); err == nil {
-						if packageJSON := r.parsePackageJSON(pkgDir); packageJSON != nil && packageJSON.exportsMap != nil {
-							if r.debugLogs != nil {
-								r.debugLogs.addNote(fmt.Sprintf("Looking for %q in \"exports\" map in %q", esmPackageSubpath, packageJSON.source.KeyPath.Text))
-								r.debugLogs.increaseIndent()
-								defer r.debugLogs.decreaseIndent()
+						if packageJSON := r.parsePackageJSON(pkgDir); packageJSON != nil {
+							// Try checking the "tsconfig" field of "package.json". The ability to use "extends" like this was added in TypeScript 3.2:
+							// https://www.typescriptlang.org/docs/handbook/release-notes/typescript-3-2.html#tsconfigjson-inheritance-via-nodejs-packages
+							if packageJSON.tsconfig != "" {
+								join = packageJSON.tsconfig
+								if !r.fs.IsAbs(join) {
+									join = r.fs.Join(pkgDir, join)
+								}
 							}
 
-							// Note: TypeScript appears to always treat this as a "require" import
-							conditions := r.esmConditionsRequire
-							resolvedPath, status, debug := r.esmPackageExportsResolve("/", esmPackageSubpath, packageJSON.exportsMap.root, conditions)
-							resolvedPath, status, debug = r.esmHandlePostConditions(resolvedPath, status, debug)
+							// Try checking the "exports" map. The ability to use "extends" like this was added in TypeScript 5.0:
+							// https://devblogs.microsoft.com/typescript/announcing-typescript-5-0/
+							if packageJSON.exportsMap != nil {
+								if r.debugLogs != nil {
+									r.debugLogs.addNote(fmt.Sprintf("Looking for %q in \"exports\" map in %q", esmPackageSubpath, packageJSON.source.KeyPath.Text))
+									r.debugLogs.increaseIndent()
+									defer r.debugLogs.decreaseIndent()
+								}
+
+								// Note: TypeScript appears to always treat this as a "require" import
+								conditions := r.esmConditionsRequire
+								resolvedPath, status, debug := r.esmPackageExportsResolve("/", esmPackageSubpath, packageJSON.exportsMap.root, conditions)
+								resolvedPath, status, debug = r.esmHandlePostConditions(resolvedPath, status, debug)
 
-							// This is a very abbreviated version of our ESM resolution
-							if status == pjStatusExact || status == pjStatusExactEndsWithStar {
-								fileToCheck := r.fs.Join(pkgDir, resolvedPath)
-								base, err := r.parseTSConfig(fileToCheck, visited)
+								// This is a very abbreviated version of our ESM resolution
+								if status == pjStatusExact || status == pjStatusExactEndsWithStar {
+									fileToCheck := r.fs.Join(pkgDir, resolvedPath)
+									base, err := r.parseTSConfig(fileToCheck, visited)
 
-								if result, shouldReturn := maybeFinishOurSearch(base, err, fileToCheck); shouldReturn {
-									return result
+									if result, shouldReturn := maybeFinishOurSearch(base, err, fileToCheck); shouldReturn {
+										return result
+									}
 								}
 							}
 						}
@@ -1173,7 +1187,6 @@ func (r resolverQuery) parseTSConfigFromSource(source logger.Source, visited map
 						r.debugLogs.addNote(fmt.Sprintf("Failed to read file %q: %s", pjFile, originalError.Error()))
 					}
 
-					join := r.fs.Join(current, "node_modules", extends)
 					filesToCheck := []string{r.fs.Join(join, "tsconfig.json"), join, join + ".json"}
 					for _, fileToCheck := range filesToCheck {
 						base, err := r.parseTSConfig(fileToCheck, visited)